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London 2012: a Social Legacy for East London?

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London 2012: a Social Legacy for East London? London 2012: a social legacy for East London? By Ellen Vanderhoven, October 2012 “Let’s make sure the Olympics legacy lifts East London from being one of the poorest parts of the country to one that shares fully in the capital’s growth and prosperity”. David Cameron, May 20101 Legacy has been the buzzword of London 2012. An awareness of what these Games would leave behind and a sensitivity to the needs of local people were principles which helped make ours the winning bid seven years ago. Now that the Games are over and the keys to the Olympic Park are being handed over to the London Legacy Development Corporation (LLDC), serious attention is turning to the future of East London post-2012. The official London 2012 slogan, ‘Inspire a Generation’ mirrors our own belief that the Olympics has provided our area of East London with a unique opportunity to tackle decades of exclusion, to transform the communities we support and to secure a positive impact on the lives of young people in Newham. That’s why we established the “Living Legacy” project, ensuring that the hardest to reach young people in East London see a marked change to their prospects. We want to “Inspire a Generation” of kids living on the doorstep of the Olympic Park so that they’ll be ready for anything, understanding they have potential, and knowing how to unlock it. We want to see a generation that plays its full part in society. And even more importantly, a generation which brings up the next generation to be the same; passing on the torch of a positive legacy; a generation which shows others how to do it The ‘Living Legacy’ project will touch those young people that we work with in Newham, but the Olympic legacy as a whole is a much broader undertaking. This report summarises some of the projects and proposals relating to the social legacy of the Olympic Games, identifying the main parties involved and the progress of any plans. Furthermore, it presents reactions of various parties to the projects mentioned and lays out Community Links’ recommendations for the LLDC and its new Chair and London Mayor Boris Johnson relating to the future progress of the Olympic legacy, drawing on our experiences of working in East London. 1 David Cameron (28 May 2010) Transforming the British economy 1 The report focuses on three principal areas; 2.1. Housing 2.2. Employment, skills and business 2.3. Community resources and connections 1. Legacy promises It is important to make clear what exactly a ‘legacy’ for East London means for the parties charged with delivering it and what promises have been made. One of the most definite statements of what the Olympics should achieve for East London comes from the Department for Culture, Media and Sport, as part of their 5 Olympic Promises: Promise 2 – Transform the heart of East London. Headline Ambitions 1. Transforming place: create a well-planned and well-managed environment in and around the Olympic Park which will attract business investment and promote recreational and cultural use for years to come. 2. Transforming communities: build over 9,000 new homes, a large proportion of which to be affordable; and provide new sport, leisure, education and health facilities that meet the needs of residents, business and elite sport. 3. Transforming prospects: help 20,000 workless Londoners from the 5 Host Boroughs into permanent employment by 2012; and create 12,000 job opportunities in the area of the Park post- Games.2 In addition, the Department for Communities and Local Government has outlined a commitment to improve the quality of life of East London residents: A renewed commitment from the Mayor and the East London Boroughs of Newham, Waltham Forest, Barking and Dagenham, Tower Hamlets, Greenwich and Hackney to tackle the factors such as low educational attainment and life expectancy that have prevented East Londoners enjoying a quality of life that those in 3 other parts of London take for granted. 2 DCMS (2008) Before, during and after: making the most of the London 2012 Games: p8 3 http://www.communities.gov.uk/regeneration/olympicslegacy/ 2 This is defined more clearly in the Strategic Regeneration Framework (SRF) and later reports written by the Mayor of London and the host boroughs. Here, the organising principle of Convergence is developed which states that “within 20 years the communities who host the 2012 Olympic Games will have the same social and economic chances as their neighbours across London”4. In particular, the importance of getting more local residents into work and better paid work is highlighted: “There is no more important factor to be addressed in tackling the persistent long-term deprivation in the Host Boroughs…The challenge for the Mayor of London and the Host Boroughs is therefore to ensure not only that such economic growth is realised, but also that the residents of the Host Boroughs are able to take full advantage of the opportunities which such growth will create.5 These statements provide some tangible benchmarks against which regeneration and development after the Olympics can be measured. In particular, the principle of Convergence acts as a measure of success for the Olympic legacy in East London over the next 20 years. 2.1 Housing Who is involved? The London Legacy Development Corporation (LLDC) was founded by the Mayor of London on 1st April 2012, taking over responsibility for the Olympic Park from the Olympic Park Legacy Company. It is now chaired by the Mayor of London and is responsible for selecting organisations to develop the park into a number of residential ‘neighbourhoods’ over the next 20 years. It will also manage some of the assets and responsibilities of existing regeneration agencies in the area. East Village (formerly the Althete’s Village) will be the first area of The Queen Elizabeth Olympic Park to reopen in October 2013. The existing buildings will be converted into more than 2,800 homes, roughly half of which are owned by Triathlon Homes, a consortium of two housing associations and an urban development company. The rest of the properties belong to a joint venture between the real estate arm of the Qatar sovereign wealth fund and Delancey6. The first of 5 new ‘neighbourhoods’ to be built in the Park is Chobham Manor, opening in 2015. It was recently announced that property development firm Taylor Wimpey and housing association L&Q will be responsible for developing 4 Hackney Council (2011) Convergence framework and action plan 2011-2015 5 Hackney Council (2011) Convergence framework and action plan 2011-2015: p2-3 6 http://www.triathlonhomes.com/ 3 this area7. The remaining four neighbourhoods - Eastwick, Marshgate Wharf, Sweetwater and Pudding Mill - have yet to be assigned developers. What has been done so far? The main focus at the moment is on the reopening of East Village next year when 6,000 new residents will move in. Triathlon Homes will provide affordable homes to rent or buy, of which 675 are for social rent8. The properties owned by Qatari Diar and Delancey will be open market homes mainly available for private rental. Construction on Chobham Manor begins in October and should be completed in 2015. The development will contain 870 homes, of which more than 70% will be for families. Here, 28% of homes will be affordable and it has been suggested a Community Land Trust could become part of this provision. This development is aimed at responding to calls from the local community for quality family housing and more open spaces9. What is still to come? The aim is to build an additional 8,000 homes in the Park over the next two decades. The LLDC currently has outline planning approval for 6,800 properties. Site wide, the LLDC has committed to 35% affordable housing and 40% family housing10. Developers for the remainder of the Park have yet to be chosen. What has been said? Keith Fernett, director of homeless skills centre Anchor House has voiced his concern over the definition of ‘affordable’ housing. After recent changes to social housing legislation this can place rents at up 80% of the local market value11; meaning a two-bedroom flat in the East Village advertised at £762pcm would be deemed affordable12. An East Thames Group study has found that 65% of Newham households would be unable to afford a three-bedroom property at 80% market rates13. The report also found that the Affordable Rent model will create housing benefit dependency among the very working families that the Olympic development aims to offer fresh prospects. This has raised concerns about who the new housing will be aimed at: 7 LLDC (2 Aug 2012) Legacy Corporation appoints Taylor Wimpey and L&Q to build first neighbourhood 8 http://www.triathlonhomes.com/new_homes/ownership_and_rental_options.php 9 LLDC (2 Aug 2012) Legacy Corporation appoints Taylor Wimpey and L&Q to build first neighbourhood 10 www.londonlegacy.co.uk 11 Communities and Local Government (2011) Affordable Homes Programme - Framework: p15 12 Independent.co.uk (2 July 2012) Price rise for ‘affordable’ housing puts Olympic legacy under threat 13 East Thames Group (2011) Impact of the Affordable Rent Model - Newham: p1 4 “Traditionally 'affordable' meant homes for working-class, low- income people. It has been redefined and now it means affordable for graduates and young professionals” Keith Furnett, Director of Anchor House Penny Bernstock, Housing Consultant at the London East Research Institute (LERI), has highlighted that a significant proportion of the affordable housing on offer will be for sale rather than rent, making it inaccessible to many who should be the targets of affordable housing14.
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